Discovering the perfect combination of stocks to invest in nowadays could make a significant impact down the line. Included in this ideal selection are various Canadian consumer discretionary stocks that investors ought to think about purchasing.
Here’s how I’d allocate $15,000 into some top-notch Canadian consumer discretionary equities.
Allocate $6000 into this major retailer
The initial consumer discretionary choice to think about is Canadian Tire Corporation ( TSX:CTC.A ). Canadian Tire is one of the largest and most well-known retailers in Canada .
Apart from its namesake, Canadian Tire operates under several other banners that include automotive parts, clothing, party supplies, and financial services. In recent years, Canadian Tire has also expanded its suite of private-label brands.
These brands offer protective advantages and strong brand presence against the increasing influx of online-only offerings. The wide array of product options further assists Canadian Tire in distributing quite substantial dividends.
At the moment of this writing, that dividend amounts to an impressive 3.5%. Investing $6,000 in Canadian Tire at present could facilitate the acquisition of extra shares via reinvestment, supporting a strategic approach for sustained expansion over time.
This positions Canadian Tire as an essential choice within the realm of Canadian consumer discretionary stocks for any investment portfolio.
Feeling hungry? Think about investing $4,000 in this particular stock.
During times when the market becomes volatile, certain sectors tend to outperform others. A prime instance of this is the fast-food industry, which often thrives even under challenging economic conditions. Restaurant Brands International ( TSX:QSR ) offers an intriguing opportunity for investors to explore.
This particular Canadian consumer discretionary stock owns Tim Hortons, Burger King, Popeyes, and Firehouse Subs.
Furthermore, these brands target distinct sectors of the market and have demonstrated robust growth recently. Notably, in the latest quarter, Restaurant Brands reported an impressive 9.6% rise in sales across all their offerings.
These positive sales numbers allow Restaurant Brands to not only fund expansion but also distribute substantial dividends. dividend .
As of the time of writing, that dividend works out to a tasty 4% yield. Like Canadian Tire, a $4,000 investment in Restaurant Brands will generate a few shares through reinvestments.
If your aim is growth, put $5,000 into this investment.
When market volatility Hits, dollar stores rise as top choices for investment. This is due to consumers opting for more economical alternatives, making places like dollar stores increasingly attractive. Dollarama ( TSX:DOL ) step into the limelight.
Dollarama stands as the leading dollar store chain in Canada, boasting more than 1,500 outlets across the country which continue to expand. Over the last ten years, the company's expansion has been nothing short of remarkable. To be precise, the stock price has skyrocketed by an impressive 270% within the past half-decade.
One reason for Dollarama’s popularity is its fixed-price strategy. Essentially, the store sets item prices between $1 and $5. Additionally, Dollarama groups multiple low-cost products into single pricing categories, offering consumers looking to avoid inflation extra savings.
Despite the highly unpredictable market conditions, the stock has risen more than 30% in the past year. Should this volatility persist and result in a broader downturn or an economic recession, anticipate consumers to gravitate towards shopping at Dollarama instead.
An investment of $5,000 in this particular Canadian consumer-discretionary stock can aid in driving long-term expansion within a thoroughly diversified portfolio.
Closing Thoughts: Discretionary Stocks in Canada Worth Purchasing Today
Recently, the market has been quite volatile; however, the three aforementioned stocks offer significant defensive qualities and potential for growth for those with a long-term investment horizon.
In my view, at least one or possibly all of the aforementioned stocks ought to form the cornerstone of any thoroughly diversified investment portfolio.
The post How I'd Allocate $15,000 in Canadian Consumer Discretionary Stocks for Life’s Luxuries appeared first on The Motley Fool Canada .
Is it wise to put $1,000 into Canadian Tire at this moment?
Prior to purchasing shares in Canadian Tire, keep this in mind:
The Motley Fool Stock Advisor Canada The analyst team has recently pinpointed what they think could be the Leading Stocks for 2025 and Further Ahead For investors looking to purchase now—and Canadian Tire was not among them—the top stocks selected have the potential to generate substantial gains over the next few years.
Consider MercadoLibre , which was initially suggested on January 8, 2014... if you had invested $1,000 in the "Latin American eBay" back then, your investment would have resulted in $20,697.16 !*
Stock Advisor Canada offers investors a straightforward roadmap to achieve success. This includes advice on constructing a diversified portfolio, receiving periodic insights from financial experts, and getting two fresh stock recommendations monthly—one from Canada and another from the U.S. Stock Advisor Canada The service has exceeded the return of the S&P/TSX Composite Index by 29 percentage points since 2013*.
See the Top Stocks * Returns as of March 20, 2025
More reading
- If you had $7,000, how would you allocate it among five blue-chip stocks as a foundation for investing?
- TSX Now: Key Stock Trends to Track on Friday, April 4
- How I'd Allocate $1,000 Today for Future Expansion
- Have $2,000? Purchase These 2 Canadian Stocks While Trump Tariffs Disrupt the Market
- 5 Canadian Equities to Purchase and Keep for The Coming 15 Years
Fool contributor Demetris Afxentiou has no holdings in any of the discussed stocks. The Motley Fool endorses Restaurant Brands International. The Motley Fool has a disclosure policy .